Reading 2 minutes Views 2 Published Updated
According to a June 8 announcement, wallet infrastructure provider and digital asset custodian BitGo signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust.
The terms of the agreement were not disclosed. If the deal goes through, BitGo will acquire Prime Trust payment processors and a cryptocurrency IRA fund, as well as expand its asset management offerings.
Nevada-based trust company Prime Trust will also join the BitGo network of regulated trust companies in South Dakota, New York, Germany and Switzerland. The Prime Trust API infrastructure and exchange network will be “1:1 mapped” to the BitGo services. According to BitGo’s statement:
“This acquisition makes BitGo the first global digital asset company to provide a complete set of solutions for institutions and fintech platforms.”
The crypto custody market is booming, with Ripple acquiring Swiss-based digital asset custody provider Metaco in May for $250 million. In addition, the market is affected by technological progress.
BitGo signed a term sheet to acquire the equity of Prime Core Technologies, Inc., the parent company of Prime Trust, bringing business continuity, long-term stability and regulation, secure solutions to valued Prime Trust clients.
This acquisition makes BitGo the first global… pic.twitter.com/CUcTUeCFKu
— BitGo (@BitGo) June 8, 2023
The acquisition comes after the US Securities and Exchange Commission proposed changes to rules that would make it harder for crypto companies to act as custodians of their clients’ funds.
Related: Subsidiary Prometheum Receives FINRA Approval for Escrow of Digital Assets
Prime Trust reportedly laid off a third of its staff in January. Later, he took up custody of Binance client funds. US through a network of partner banks after the banking crisis in March. He became the focus of a scandal in the US state of Oregon last year when he was identified as the source of a $500,000 contribution to the state’s Democratic Party, later revealed to be from FTX chief executive Nishad Singh.
Bitgo itself was nearly acquired by Galaxy Digital last year for $1.2 billion and filed a lawsuit against Galaxy after the deal was cancelled.